• Japanese officials continue to flag concerns over a weaker yen nP8N3K10QK

• However, higher U.S. yields reduce the appetite to fade USD/JPY upside

• Reminder that USD/JPY is predominantly a rates trade

• Unless U.S. yields head lower, a sustainable reprieve for yen is unlikely

• That said, recent JP data keeps a BoJ Jan hike alive

• Services PPI 3% vs 2.9% prior, Tokyo core CPI 2.4% vs 2.5% f/c

• BoJ's Ueda eyes branch managers survey (Jan 9)

• Resistance = 158.00-10 (Dec highs), 159.45-50, 160

• Support = 156.76 (Nov high), 156.16 (200HMA), 154.90-155 (pre-BoJ level)

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